The Evolution Of Tokenized Security (Security Token)

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INTRODUCTION

Hello and Happy Sunday pals, hope you all are doing well today..I'm delighted to write tin this platform once again sharing my views on various topics

Today I would be talking on a very interesting topic EVOLUTION OF TOKENIZED SECURITY I here I would delve deeper on the subject matter from where it all began to switch from Cryptocurrencies to tokenized assets and lots more.So sit back and enjoy.

The financial sector has undergone very massive transformation over the past years with the Advent of Cryptocurrencies and blockchain.

Amongst all this, tokenized securities have emrged as a game changer, representing a new era in finance securities,and blockchain technology and it's applications and the Impact on financial industries

HOW IT ALL BEGAN

Before I continue on tokenized securities,I would like us to go back to where it all began, so we could understand the evolution of tokenized securities

Going back to the year 2008 we all can recall that an anonymous person known by the name Satoshi Nakamoto invented the first Cryptocurrency ever called Bitcoin.

Bitcoin was created as a decentralized digital assets that enables a more transparent and secured means of transaction on a p2p network, with the need of a third-party like financial banks.

This technology that allows the possibility of all this is an immutable ledger that distribut and record transaction in a more secure and transparent manner is called the blockchain.

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Which also have offered a way to various industries and individuas a more streamline process to digital assets than relying on centralized system like the banks

EVOLUTION OF TOKENIZED SECURITY FROM CRYPTOCURRENCIES

While Bitcoin and other Cryptocurrencies gained public acceptance and adoption, the idea of tokenizing assets, which involved changing rights of an asset into a digital token on a blockchain began to take shape.

These token represent real life assets like real estate commodities etc,But when we say security tokens they refer to digital assets, unlike utitly tokens which is based on future products,

they get their value from real life tradable assets within an ecosystem ,Offering same protection like a traditional assets

• INCEPTION OF INITIAL COIN OFFERING

Before security tokens came to limelight,(ICOs) where the main big thing because it permitted investors to be able to raise up start up funds using utitly tokens

which provided access to future services and never confer equity in the company
Although ICOs where so efficiency and effective when it comes to easily rasing billions of dollars

it faced challenges of regulatory oversight which gave room to numerous scam and fraudulent projects resulting in losses for big investors

• INCREASED REGULATIONS AND THE EVOLUTION OF SECURITY TOKENS

The increasing scam and fraudulent activity and lack of protection for investors brought the attentions of international regulatory bodies and financial authorities.

This regulatory scrutiny created an avenue for the creation of security token, all based on the dire need of the compliance of securities laws. Which aimed at facing the challenges of ICOs

In response to regulatory challenges, the securities and exchange commission (SEC) made a publicational guildlines Making fully sure that every ICOs provided securities which marked a turning point on the evolution of tokenized securities (STOs).

This concept of security token differ in their compliance to regulatory bodies although they are a bit similar to ICOs with the way they involve the insurance of digital tokens, ensuring investors protection and reduction of fraud

CONCLUSION

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While the challenges remain present, the roadmap of tokenized securities looks bright, with the evolution of tokenized securities which has transformed

the financial industry and have the acess to investment, enhance liquidity in a more compliant way